India’s IPO party defies weak markets as most listings outperform

Zerodha CEO Nithin Kamath has highlighted a striking contrast in India’s public markets: while equities remain under pressure, recent mainboard IPOs are thriving. Data he cited shows a significant majority of IPOs listed over the past year traded above their issue prices, delivering robust median returns.

The trend follows a notable wave of new-age tech listings in fiscal year 2026, when a meaningful number of Indian startups went public—the first surge of its kind since the market cooled in recent years. Inc42’s tracker confirmed the debuts, though it did not name the companies or disclose financial details. The timing aligns with a reopening IPO window that appears selective, favoring startups with tightened governance and operational discipline.

Regulators are taking notice. SEBI has signaled tighter scrutiny of small IPOs, aiming to filter out listings that may not be suited for capital markets. The move, disclosed in a recent *YourStory* interview, reflects concerns about sustainability in a market where only the most prepared companies seem to succeed.

The data Kamath shared suggests investor appetite remains strong for well-positioned startups, even as broader market sentiment stays cautious. What remains unclear is whether this selective IPO rally can sustain itself—or if the window will narrow further as regulators and investors grow more discerning. For now, the momentum appears confined to a bullish segment of the market.

Sources: economictimes.indiatimes.com